Pre-sale system of commercial real estate property and price of property

The Pre-sale System of Commercial Real Estate Property (PSCREP) is vital to current real estate industry on the given marketing environment in China. The PSCREP is adopted globularly. However, some limitations of this system and a few controversies occurred in China because of Chinese specific environment, which included the development of real estate industry, the system of credit, and supervision of the government. The relationship between the PSCREP and the price of property was discussed in this paper. The effects of the PSCREP on the price of property were discussed. In this paper, the author considered that pre-sale system should be regulated by the market rather than be artificially canceled. The pre-sale system benefits both developers and purchasers. Some proposals were offered to perfect the current PSCREP in China, which would be helpful for the continuous development of real estate industry in China.